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Appetite for SEND properties remains robust as demand for services spikes, says Christie & Co annual report

Specialist business property adviser, Christie & Co, has today launched its Business Outlook 2025 report which reflects on the themes, activity and challenges of 2024 and forecasts what 2025 might bring across the sectors in which Christie & Co operates, including the SEND schools sector.

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Courteney Donaldson

Courteney Donaldson

Managing Director - Childcare & Education

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Market overview

The SEND school sector in 2024 was characterised by significant demand from private sector buyers for suitable properties for expansion, ongoing growth in state school-based provision, additional government funding initiatives, and a rising number of pupils requiring special educational support.

As of January 2024, there were over 1.6 million school pupils in England with identified SEND and the number of children and young people with EHC plans increased to 576,000, a rise of 11.4 per cent from 2023. Additionally, the proportion of pupils receiving SEND support without an EHC plan rose to 13.6 per cent in 2024, up from 13 per cent in 2023. This increase will likely lead to more initial requests for EHC plans and a subsequent rise in the number of EHC plans issued – the greatest challenge for 2025 and indeed the years ahead will be in how the needs of these children are met.

As the demand for SEND services rises at pace, the sector continues to attract significant interest from those dedicated to expanding and enhancing services to meet the needs of all children with SEND.

Throughout 2024, the sector saw significant demand for properties suitable for SEND school provision, with significant interest from existing operators looking to expand and new entrants aiming to address the growing need for SEND placements and services. Buyers were particularly interested in vacant former school sites but also considered former hotels, care homes, and community assets like libraries, with many of these property types being suitable for the creation of new SEND services, including day and residential provision.

Heightened public awareness associated with the shortage of SEND services also led to interest from new sector entrants, innovators, investors, and developers seeking to invest in creating new purpose-designed educational settings in partnership with experienced SEND providers in a bid to create additional high-calibre SEND capacity.

Market sentiment

As part of its annual sentiment survey, Christie & Co asked childcare and education providers across the country for their views on the year ahead. When questioned about their sentiment in 2025, 29 per cent said they feel positive and 31 per cent feel negative, while the majority (40 per cent) remain neutral which illustrates the uncertainty that remains. When asked about their sale and acquisition plans, 62 per cent stated that they are looking to buy and/or sell this year.

Market predictions for 2025

In 2025, Christie & Co expects:

  • Owners exiting the market will achieve premiums, driven by competitive buyer tension
  • Demand for properties with vacant possession will continue to facilitate new capacity creation
  • Local authority budget pressures will increase the focus on providers demonstrating value for money
  • Infrastructure property funds will show additional interest in assets occupied by SEND providers
  • Regulatory scrutiny will intensify

Courteney Donaldson, Managing Director – Childcare & Education at Christie & Co, comments, “During 2024, we saw many established operators continue to balance the daily challenges of day-to-day operations, alongside striving to identify, create and register new places, and open new schools.  Alongside organic developments, providers remained keen to expand their services via acquisitions meaning that established, high-quality services continue to be highly sought-after by a large pool of enthusiastic and well-funded purchasers. While the market moved forward in 2024, the sector was not immune to challenges, with local authorities continuing to sign up for Safety Valve agreements, and concerns around the sufficiency and allocation of the £1 billion uplift in funding for SEND in the Autumn Budget 2024 with advocates calling for more capital to ensure every child can access the education they need. Despite these headwinds, the sector continues to attract significant interest from established trade buyers, new entrants to the SEND sector, investors and developers, a trend which is very much expected to continue through 2025 and into the years beyond.”

To read the full business outlook report, visit: https://www.christie.com/news-resources/business-outlook-2025/childcare/

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For further information on this press release, contact:
Phoebe Hill, Associate Director – Corporate Communications
P: 07540 063 598 or E: phoebe.hill@christie.com

Visit Christie & Co’s Business Search page to find out more about current listings.

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